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Tax

All About Business Loan Tax Deduction Under Section 80C

People who have taken loans for business are entitled to certain tax deductions under Indian income tax laws. Section 80C of the Income Tax Act allows a deduction for the interest paid on loans taken for businesses. The deduction is available for both new and existing businesses. To claim this deduction, you must be able to show that the loan was used for business purposes. The deduction is limited to the amount of interest paid during the year. If you are planning to take out a business loan, it is important to understand how the tax deduction works. This will help you maximise your tax savings. Continue reading to learn more about business loan tax deductions under Section 80C. Section 80C Business Loan Tax Deduction A business loan tax deduction under Section 80C is a deduction that businesses can claim on the interest paid on their loans. The deduction is available for new and existing loans and can be claimed for up to five years. To claim the deduction, businesses must provide evidence of the loan agreement, repayment schedule, and interest paid. The deduction can be claimed in the year the loan is taken out or in subsequent years. The maximum amount that can be deducted yearly is Rs 1 lakh (Rs 100,000). This limit applies to all deductions under Section 80C, including those for home loans, education loans, and life insurance premiums. The business loan tax deduction under Section 80C can save businesses thousands of rupees a year in taxes. It is an important tool for businesses to reduce their tax liability and improve their bottom line. Business Loan Tax Deduction Calculation To calculate a business loan tax deduction in India, you will need to follow these steps: Determine the eligible amount of the business loan. The eligible amount is the total loan minus any prepayment penalties or fees. Calculate the interest paid on the business loan. This can be done by taking the eligible loan amount and multiplying it by the interest rate. Add the calculated interest payment to your other business expenses when filing your taxes. The total amount of deductions for all business expenses cannot exceed 50% of your total income from the business. Types of Business Loans that Qualify for a Tax Deduction Under Section 80C There are many types of business loans that qualify for a tax deduction: Home loans: Under Section 24 of the Income Tax Act, home loans used for business purposes are eligible for a tax deduction of up to Rs. 1.5 lakhs per year. Auto loans: Auto loans taken for business purposes are eligible for a tax deduction of up to Rs. 1 lakh per annum under Section 80E of the Income Tax Act. Education loans: Under Section 80E of the Income Tax Act, education loans taken for business purposes are eligible for a tax deduction of up to Rs. 1.5 lakhs per year. Personal loans: Under Section 80C of the Income Tax Act, personal loans taken for business purposes are eligible for a tax deduction of up to Rs. 2 lakhs per year. Machinery loans: Similar to vehicle loans, you can deduct the interest paid on machinery loans used for business purposes. Startup loans: Many startups take out loans to get their businesses off the ground. The interest paid on these startup loans can be deducted from your taxes. Working capital loans: Often, businesses need extra funds to cover their day-to-day expenses. The interest paid on working capital loans can be deducted from your taxes. Business Loan Tax Deduction: How Much Can Be Saved? Assuming your business is structured as a pass-through entity, such as an LLC or sole proprietorship, the loan proceeds are generally taxable. However, you may deduct a portion of the loan as business expenses if the funds were used for business purposes. Let’s see how much can be saved in taxes. For example: If the business owner takes a loan for business purposes and pays interest on that loan, then she can avail herself of a deduction for the interest paid under Section 80C of the Income Tax Act. The maximum amount that can be deducted is Rs 1.5 lakh per financial year. This deduction is over and above the limit of Rs 1.5 lakh that can be claimed under Section 80C for other deductions such as investments in PPF, life insurance premiums, etc. Thus, if a business owner takes a loan of Rs 10 lakhs at an interest rate of 10%, she can claim a deduction of up to Rs 1.5 lakhs on the interest paid every year. This effectively reduces her annual tax liability by up to Rs 45,000 (30% * 1.5 lakhs). These significant savings can be used for other important expenses, such as growing the business or personal needs. Ways to Claim Business Loan Tax Deduction Under Section 80C Assuming that you have obtained a business loan for your company, you can claim a tax deduction under Section 80C of the Income Tax Act of 1961. The maximum deduction amount is Rs. 1.5 lakhs. To avail yourself of this deduction, you must submit various documents to the lender, such as: Your business loan account statement for the financial year A copy of your income tax return filed for the previous year A certificate from a chartered accountant certifying that the loan has been used for business purposes Once you have submitted these documents, the lender will calculate the eligible deduction amount and send you a confirmation letter. You can then claim the deduction by submitting this letter to the Income Tax Department. Tips for Section 80C Business Loan Tax Deductions Remember a few things to remember while claiming business loan tax deductions under section 80C: Make sure your business loan is for a genuine business purpose, not personal use. You can claim tax deductions on the interest payments made on the business loan under Section 80C of the Income Tax Act. The maximum amount you can claim as a deduction under this section is Rs 1.5 lakhs per financial year. You must submit all supporting documents and income tax returns to claim the deduction. [B-02] Key Takeaways You can save money on your taxes with the right business loan tax deduction. Be sure to talk to your accountant or financial advisor to see if this could benefit you and your business. If you’re interested in learning more about the business loan tax deduction under Section 80C, visit Piramal Finance, where you can read more articles like this and get started on your business loan taxes with the aid of a professional.

08-11-2023

Business Loan

Everything About Unsecured Business Loan Eligibility And Interest Rate

India’s economy is called an “emerging economy.” It has given a lot of chances to young people who want to make a name for themselves in the business world. Firms need money to operate. From the idea stage to putting the first working system on the market, they need to have a lot of money. There are also other costs. It includes wages, raw materials, utility bills, transportation, and other small things. Most business owners get loans to pay for their businesses. Business loan eligibility is also different for many lenders. There are two kinds of business loans: Secured Business Loans Unsecured Business Loans [B-01] Secured business loans are those that the person backs with a security deposit or a kind of collateral. Most of the time, secured loans are given out in the form of equipment loans, vehicle loans, term loans, or loans against property. Unsecured loans are given out based on the business’s reputation, not on collateral or a guarantee. Most people get these loans for a short time, up to a year. Good credit, submitted documents, income, and other factors are required for unsecured business loan eligibility. Read on to learn more. What is an Unsecured Business Loan? An unsecured business loan is granted based on your credit history and does not need collateral. These loans are used to develop or sustain a firm’s functions or to maintain cash flow. You may use it to bring extra money to a firm. It helps it achieve its aims. Interest rates vary from lender to lender. They might exceed 14.99%. Although the standard concept of an unsecured loan does not need security, the reality is a bit different. Rather than seeking collateral, the banks impose a general law on vital assets until the debt is fully repaid. This enables those with strong credit or solid firms to get loans without giving large assets to small firms’ loans. Benefits of an Unsecured Business Loan Different banks have different business loan eligibility criteria and benefits for their best-unsecured business loan offers. Here are some traits that these loans have in common: Unsecured business loans are those that do not need collateral or security. These loans are made based on the applicant’s reputation and payback history. The lender may also take into account other relevant aspects. Most banks ask that the said firm be profitable for at least two years. The loan sum might range between Rs. 10,000 and Rs. 1 crore. This is based on the size and needs of the firm. The loan term is generally varied, ranging from 1 to 5 years or more. Unsecured Business Loan Eligibility Criteria Given below are the unsecured business loan eligibility criteria: Minimum age of 18 at the time of loan request and maximum age of 65 at the time of loan completion. A credit score of 750 or above is needed. Presence of a business for a minimum of one year in the same place with proof of profit. You must have a steady source of income and wage slips. Bank information or the most recent six months’ bank statement. Documents needed for Unsecured Business Loan eligibility The papers needed for unsecured business loan eligibility are as follows: You will need to give a recent passport-sized photo of yourself, proof of your identity, address, signature, income, bank statements, and proof that your business will keep running. Customer letter for the end use or proposed end use of BIL funds OD sanction letter, where DP/OD limit is not listed in the bank statements. Certificate of professional qualification for experts Partnership deed, or MOA/AOA for partnership firms, and a certificate of incorporation, or Form 3CB and 3CD or Form 3CC and 3CE for companies, as applicable. Factors affecting Business Loan eligibility Small business owners can get business loans from multinational firms. Their revenue projections differ, as do their business loan needs. To figure out the best interest rates, the bank must carefully evaluate the entities’ eligibility. The factors which affect business loan eligibility are given below: Credit Score Banks must be confident in your ability to repay. A good credit score guarantees that to the bank. To determine credibility, the bank will look at the firm’s credit score. They investigate your repayment history for other loans and liabilities. A good credit history will make it easier to get a loan with favourable terms and interest rates. Business Stability The economic stability of the business is critical for loan approval. Banks will investigate the vital’s sales and profit margins. This can be deduced from your business record and the duration of your vital’s existence. Banks typically prefer to lend to companies that have been in operation for at least three years. The older the business, the better the chances of obtaining a business loan with an attractive interest rate and other terms. Profitability and continuity of the Business Another vital criterion is that your business should make a lot of money. A business that isn’t doing well wouldn’t be a good candidate for a loan from a bank. The bank could ask to see your profit and loss statements from the last two years. Profitability and revenue are vital factors in deciding whether a business can get a loan. Your current relationship with the Bank Your present position with the bank is also vital. All your dealings with the bank, such as your cash flow and payments, will be looked into by the bank. It will see how well you’ve paid back any bank loans you already have. Collateral Many government programmes offer business loans without collateral, but the borrower can offer any kind of collateral he is comfortable with to get good loan terms and interest rates. The government rules say that the applicant does not have to provide collateral, but they can if they want to. By putting up something of value as security for a loan, you can borrow more money and pay less interest. [B-02] Conclusion Unsecured business loans are an effective way to get quick financing for your vital needs. You may give your dreams wings and help you to reach new heights. Yet, before applying for and closing on an unsecured business loan, you should carefully examine the factors affecting unsecured business loan eligibility. For more blogs on the best-unsecured business loans, check out Piramal Finance and explore their products and services.

08-11-2023

Personal Loan

Education Loan Calculator: Its Features, Benefits, Functions and More

A good education is important to get your dream job and lead a successful life. However, education costs are rising around the world. These rising costs mean that parents must start saving for their children’s education at a very early age. However, many families still struggle with a shortage of funds when paying for their children’s education. For many families, applying for an education loan is a necessary part of getting an education. There are many aspects to an education loan and they must be understood well to ensure that the right loan amount is taken and that repayments are made diligently. In such a scenario, an education loan calculator helps families know the exact amount of money they will be taking and paying back, and what calculations were used to arrive at these amounts. [B-01] What Is An Education Loan? An education loan helps students meet the financial requirements of pursuing a degree. It can be used to complete your course either in India or overseas. The money borrowed is used to pay the course fee and other education-related expenses including accommodation, examination fees and other miscellaneous costs. There are two primary eligibility criteria to secure an education loan in India. First, you must be an Indian citizen. Second, you must have an official admission letter from a recognized educational institution. Currently, there are many lenders offering education loans in India. So, you have many options when selecting the right education loan for your needs. What Is An Education Loan Calculator? An education loan benefits many students. However, students and parents must consider the EMIs before applying for an education loan. EMI is Equated Monthly Instalments. These are the monthly payments the student will make to repay their loan, with interest. An education loan calculator helps students understand the three important components of EMIs: the principal, interest and tenure. Principal: The money borrowed by the student from the bank or financial institution. Interest Rate: The percentage charged by the lender on the education loan. Tenure: The timeframe within which the principal and interest should be repaid in full. Students will pay EMIs every month for a fixed tenure and some education loans come with a fixed interest rate. So graduates will pay a fixed EMI throughout the repayment period. For these reasons, you must consider your ability to make EMI payments before getting an education loan. This is where an education loan calculator comes in. An education loan calculator helps calculate the EMI of an education loan based on the details you enter. For example, you must enter the principal amount, the interest rate and the tenure period. The education loan calculator will then tell you the EMIs you must pay. How Are EMIs Calculated By The Education Loan Calculator If you do not use an education loan calculator, you must use the following formula to calculate your monthly EMIs manually: [P x R x (1+R)^N]/[(1+R)^N-1] Where: P = the principal loan amount R = the interest rate N – the repayment tenure or the number of monthly instalments Let’s try to understand this using an example. In this example, you are getting an education loan of Rs. 10 lakh. The repayment period is 60 months and the interest rate is 12%. If you follow the mathematical formula, you will be paying around Rs. 22,244 in monthly EMIs for 60 months. Solving this formula with various factors once or twice is fine. However, you will be consulting different lenders when looking for an educational loan. Each lender will have a different education loan offering. This means you will have to spend a lot of time calculating the EMIs of different lenders. It is entirely possible that you may get confused or make a mistake in your calculations when done manually. In this case, even a small mistake could impact your financial future. An easier and more reliable method is to use an education loan calculator, which is easy to use and available for free. With an education loan calculator, just enter the three components listed above and check your EMIs instantly. Benefits Of Using An Education Loan Calculator There are many advantages of using an education loan calculator. Let’s take a look at some of the most important benefits: Saves Time And Effort An education loan calculator can be used on the go. This makes it easy to calculate the EMIs instantly. Simply enter the principal amount, tenure and interest rate. The accurate result will be in front of you in a few seconds. This saves you the time that goes into doing manual calculations. Accurate Results Every Time Stress and distractions can lead to errors when doing manual calculations. In contrast, an education loan calculator has no room for error. Therefore, you get accurate results every time. This is important to plan your finances efficiently. Better Financial Planning Having a clear idea about your monthly EMIs helps you plan your finances properly. With an education loan calculator, you can calculate the amount you have to pay in the form of EMIs instantly. This helps you decide whether you can afford a loan and how an education loan will affect your financial situation. Additionally, it will also help you find the right lender. Free To Use Most education loan calculators are free to use. So, you can find one that works the best for you and use it endlessly. Furthermore, you can use them whenever and wherever you want, given you have a stable internet connection. [B-02] Conclusion An education loan calculator can help you compare the details of loans offered by various lenders. Additionally, you can work out the monthly EMIs instantly to assess your ability to make repayments. You can then use the education loan calculator to find a lender who offers the right loan amount and terms and conditions for you. Visit Piramal Finance for more interesting and informative articles about how to use education loan calculators and other useful loan-related tools!

08-11-2023

Personal Loan

Hospital Loan: Loan for Hospital Projects for Doctors in India

Medicine is one of the noblest professions. Doctors who have been in practice for a while often want to open their hospitals. But it is easier said than done. A hospital must spend a lot of money to access up-to-date equipment to deliver quality patient treatment. Often, shelling out such a huge amount at once is not possible for everyone. This is where a loan for a hospital project plays an important role. As the hospital owner, you must apply for a hospital loan to help you realise your dream of starting a hospital. What is a hospital loan? What are the most effective methods to receive it? Let’s find out. What is a loan for a hospital project? As the name suggests, these loans are granted for building hospital projects. Many banks and NBFCs offer hospital loans with affordable interest rates. The funds could be used to build a hospital, purchase medical equipment, or any other related purpose. Your hospital project financing will be quickly approved once you’ve shown you’re eligible and the right paperwork has been sent in. Features of loans for hospital projects Here are some of the features of loans for hospital projects that you should be aware of. Collateral free While it varies among different banks, you can find loans for hospital projects that don’t require collateral. Thus, getting loans for hospital projects becomes easier as one of the major criteria gets eliminated. Quick processing Loans for hospital projects don’t require much time. Further, you can now make online applications through the bank's website. All the documents can be uploaded online, and the loan can be processed quickly and efficiently. Flexible repayment Hospital loans come with flexible repayment terms. You are free to choose the tenure that fits your budget. Online account for easy access. Most banks create an online account with a login ID and password. This will allow you to track your loan status, upcoming EMIs, loan amount paid, and loan amounts pending. It also lets you download the relevant documents for your loan, like the sanction letter, repayment schedule, etc. What are loans for hospital projects? Hospital loans are a unique type of loan that can be used to pay for life-saving medical equipment. Important components of medical equipment include hospital beds, oxygen tanks, and the newest imaging and diagnostic technologies, among other things. You might use the money to purchase state-of-the-art medical equipment and provide high-end medical services. This loan for a hospital project can help you develop one of the finest hospitals with modern medical facilities. Types of hospital loans The following are the different types of hospital loans that you can avail of from any bank: Loans for nursing homes To meet the needs of modern society, nursing homes need to be easily accessible and affordable. Your nursing home may enhance the medical services in many ways, such as by getting more beds, better facilities, and the latest technology. Secured hospital loans range from Rs. 2.5 crore to Rs. 5 crore for 12 to 120 months. Unsecured loans, ranging from Rs. 10 to 50 lakhs, can be paid back over 12 to 48 months. Further, corporations, partnerships, limited liability companies, sole proprietorships, and LLPs can avail of these loan facilities. Loan for pathology research As COVID cases have changed over the past two and a half years, testing facilities have had to get bigger. Because of this, there aren’t that many pathology labs around. People living in Tier 2 and Tier 3 cities cannot access medical labs. With hospital loans, a pathology lab can be set up. Pathology labs must meet the following requirements to get money: The borrower must be at least 27 years old when the hospital loan is taken out. The loan must also be paid back within 70 years at most. You must have worked in your field for at least five years. Loans can be accessed by sole proprietorships, limited partnerships, partnership firms, companies, and limited liability partnerships (LLPs). Loans for both dentists and optometrists’ clinics Diseases and problems associated with teeth and eyes are increasing. Setting up a dental or optometry clinic with high-end equipment may require a lot of money. Thus, doctors can go for loans for hospital projects to set up their dental and optometry clinics with the latest technology. For a medical or dental facility to get a loan, the following criteria must be satisfied: The borrower must be at least 27 years old when the hospital loans are taken out. The loan must also be paid back within 70 years at most. One-person businesses, limited partnerships, limited liability partnerships, and limited liability companies are all eligible. Important facts about hospital loans A Hospital Loan gives money to qualified Indian doctors to help establish hospitals. Making something from scratch is like going somewhere you have never been before. This is because the amount needed changes from project to project depending on the type of setup you want to establish. While loans for hospital projects can be obtained without collateral, you can provide collateral to secure a higher loan amount. You can get the loans at an affordable interest rate if you satisfy all the eligibility criteria. [B-02] Conclusion A team of knowledgeable advisers from Piramal Finance is available to assist you at every stage of the application process. This boosts your chances of being accepted and receiving your funds soon. Piramal Finance is one of India’s top NBFCs. It has a specialised staff of professionals accessible 24 hours a day, 7 days a week, to assist existing and new clients.

08-11-2023

Know More

List of all housing Scheme in India

The Indian Government and its subordinates make it easy for you to own a house. A government housing scheme saves you a lot of money while purchasing real estate and provides you with a house for a lower rate. You may visit the Indian banks or HFCs and register for the housing schemes provided by the government. Look into a few of the government housing programs to find out how much less you can pay than the going rate for a property in India. PMAY, or Pradhan Mantri Awas Yojana The PMAY was created to help economically disadvantaged members of society. This comprises economically disadvantaged, middle-income, and low-income people (LIG). It aims to make homeownership more accessible to them. This approach may save INR 2.67 lakh on your home loan interest. You must first qualify as a creditor to take advantage of the program’s benefits. What is the difference between receiving benefits in an urban or rural setting? Urban: Individuals who fall under the Low Income Group, or LIG, with annual household incomes ranging from 3 lakh to 6 lakh INR EWS (Economically Weaker Section) with an annual income of up to 3 lakh INR Under the Middle Income Group, or MIG 1, a person who earns up to Rs 12 lakh annually is qualified for a 4% loan subsidy for loans up to INR 9 lakh. The maximum subsidy offered by CLSS is INR 2.35 lakh. According to the Middle Income Group, or MIG 1, a person earning up to INR 18 lakh can get a 3% subsidy. This subsidy is applied to a loan of up to INR 12 lakh. CLSS provides a maximum subsidy of INR 2.30 lakh. For different sections, the interest subsidy on the PMAY scheme is: 6.40% for the Economically Weaker Section 6.40% for low-income groups 4.00% for Middle Income Group 1 3.00% for Middle Income Group 2 Rural: The Gram Sabha itself will decide who gets what. They decide who is qualified based on data gathered at the federal level. They compile a list of the socially and economically marginalised groups in the country. The recipients’ list is then divided into groups according to the PMAY rural program. If the applicant’s name appears on the Gram Sabha’s publicly accessible list, they are eligible to apply for a house loan via the PMAY rural program. The Scheme of the Maharashtra Housing and Area Development Authority A fixed number of residences have been reserved for the scheme. They are distributed based on each applicant’s income. You can apply for a house loan under the program if you are a Maharashtra resident with a valid domicile certificate. You must be at least 18 years old, possess a PAN card, and have a consistent source of income. The income categories for flats are: Lower Income Groups (LIG), for people earning between INR 25,001 and 50,000 per month .Middle-Income Groups (MIG), for people who earn between INR 50,001 and 75,000 per month. High-Income Groups (HIG), for people who make more than INR 75,000 per month. How Do You Apply? Go to the Maharashtra Housing and Area Development Authority’s website. Fill out the application and choose your income level and lottery scheme. Then, print your application acknowledgment form and submit your online lottery registration payment. You can apply for the PMAY scheme if you wish to boost your property's affordability. The following documents must be submitted: ID card, Aadhaar certificate of domicile the voter ID card birth registration a driving licence a diploma from a school Card PAN Passport The DDA Housing Scheme Residents of Delhi are provided with schemes to afford a house of their own based on their income, like in other states. The DDA programme was initiated in March 2019. It offers five thousand flats in some parts of South Delhi. These parts include Vasant Kunj, Rohini Sector 34, and Kalkaji. If you are of Indian origin and over the age of 18, you may apply for this scheme. You should belong to one of the categories among LIG, EWS, MIG, and HIG. There are different banks listed on the DDA website. You can submit your application for this scheme at one of those banks. Enter the DDA website, complete the application form, and then make payment. Different registration fees apply depending on your category. For different categories of flats, the registration fee is listed below: For HIG flats, the fee is INR 2 lakh. For MIG flats, the fee is INR 2 lakh. For LIG flats, the fee is INR 1 lakh. For 1 BHK Flats, the fee is INR 15,000 For Janta Flats, the fee is INR 10,000. For EWS-reserved flats, the fee is INR 25,000. If you prevail at the draw, you can quickly take ownership of the apartment. To complete the necessary formalities, you can submit documents like your PAN card, Aadhaar card, voter’s ID card, bank statements, and ITR report. NTR Urban Housing Scheme The NTR Housing Scheme was initiated in 2016. It aims to assist underprivileged sections of Andhra Pradesh. They can take advantage of this by purchasing affordable housing. In 2018–19, the Andhra Pradesh government distributed 15,091 houses through the Pradhan Mantri Awas Yojana (PMAY) and NTR (Urban) Nagar schemes. Any resident of Andhra Pradesh not availing of a government-funded housing scheme can take advantage of this scheme. They are eligible to apply for this housing scheme. You must hold a valid BPL or white ration card if you wish to apply for this housing plan. Under this program, you’ll get a subsidy of INR 2.5 lakh. In addition, if you are an SC or ST beneficiary, you will receive an additional INR 50,000. Haryana Housing Board Housing Scheme This scheme aims to help the sections of society that are weak economically. This plan offers freehold residential and commercial building lots for allotment and construction within the state. You must enter a lottery according to the conditions and deadlines to benefit from the housing program. You must pay a participation fee. Your family’s annual income cannot exceed INR 3 lakh. You will have access to a freehold plot if you win the drawing. Kerala Housing Board housing scheme The Kerala State Housing Board was established in 1971. The board implemented various housing construction and home loan schemes designed to assist the economically disadvantaged in meeting their housing needs. Go to their official website to learn more about the Kerala Housing Board housing scheme. [B-02] Summing Up The government implements various government housing schemes to assist citizens. These schemes provide many subsidies and financial assistance to citizens, which can aid them in purchasing their first home. Different states have different criteria for selecting the beneficiaries of the scheme. To read in-depth, you should go to their official website. Take advice from professionals like Piramal Finance to better understand the eligibility criteria and compare the different home loan offers so that you can make an informed decision.

08-11-2023

Schemes

How Does the Pradhan Mantri Awas Yojana Work in India?

PMAY, generally recognized as Pradhan Mantri Awas Yojana, is an initiative by the government of India to provide affordable housing. This scheme has been specially developed to help the urban poor. This scheme falls under a “credit-linked subsidy scheme” (CLSS) that targets the middle-income group as its beneficiaries. The interest rate for PMAY is 6.50% per annum, which can be repaid over 20 years. This scheme was first introduced on June 25, 2015, but it has now been extended until December 31, 2024. Although this scheme aimed to provide houses to everyone on the beneficiary list by March 2022. There is also a Pradhan Mantri Awas Yojana—Gramin (PMAY-G) named the Indira Awas Yojana earlier. This scheme was started in 2016 with the main objective of developing housing units for beneficiaries in rural regions. This scheme is available across the nation except for Delhi and Chandigarh. In this category of PMAY, the central government and the respective state governments will share the expense of making these house units. The ratio for the plain region is 60:40 for the plain and 90:10 for the northeastern and hilly regions. Features of PMAY One of its highlights is that if you are a senior citizen or a differently abled person, you will be assigned to the scheme’s ground floors. In the Pradhan Mantri Awas Yojana, the government provides a subsidy rate of 6.50% p.a. on a 20-year housing loan. The PMAY scheme in India covers urban areas. These comprise 500 class 1 cities and 4000+ statutory towns. The initial plan was to implement this scheme in three phases. In PMAY, the government emphasized using sustainable development principles, eco-friendly technologies, and modern development mechanisms. This scheme is only for those who don’t have their own home. If you own a house, then you will not be eligible to apply for PMAY. Although you can use this scheme even if you already own a home, if you want to upgrade to a Pucca house, Categories of Subsidies on Pradhan Mantri Awas Yojana This scheme has been developed by considering the earnings of the various segments of the country. Accordingly, the beneficiaries of PAMY are divided into four segments. Economically Weaker Section (EWS) – Annual income of less than ₹3 lakhs This category in PMAY can benefit up to 6 lakhs with an interest subsidy of 6.50%. If your family is in the category of the EWS section, then you can buy a house with a maximum of 30 square meters of carpet area. Lower Income Group (LIG) – Annual income of ₹3 to ₹6 lakhs. In the lower income category, families can avail of a loan up to Rs. 6 lakhs with a 6.50% p.a. subsidy on the interest rate. In this category, your family can also purchase a house with a maximum carpet area of 30 square meters. Middle Income Group 1 (MIG 1) – Annual income of ₹6 -₹12 lakhs. Under the Pradhan Mantri Awas Yojana, families in the middle-income category (Category 1) may get a loan of up to Rs. 9 lakhs, on which there is an interest subsidy of 4.00% p.a. If your family falls under the MIG 1 category, you can purchase a house with a maximum carpet area of 160 square meters. Middle Income Group 2 (MIG 2) – Annual income of ₹12 – ₹18 lakhs. Under Pradhan Mantri Jan Awas Yojana, the middle-income group category II, your family may get a loan of up to 9 lakhs, on which there is an interest subsidy of 3.00% p.a. If your family falls under the MIG 2 category, then you can purchase a house with a maximum carpet area of 200 square meters. How Does PMAY Work? The Pradhan Mantri Awas Yojana benefits can be availed if you want to buy a new house from a developer and acquire a house from the secondary market. You can also take out loans under this scheme to upgrade your kaccha houses to pucca houses. For example, assume you fall under MIG category 2 and your family wants to buy a house for ₹ 60 lakh. In the usual scenario, you will have to make the mandatory minimum down payment of 20 percent, i.e., ₹12 lakh, and take a loan for the remaining ₹48 lakh. Whereas under the Pradhan Mantri Awas Yojana, you will get a subsidy of 3 percent up to ₹12 lakh, so the home loan interest rate will be applicable only on the remaining ₹36 lakh. How do I apply for the Pradhan Mantri Awas Yojana? There are several options for applying for PMAY, such as Pradhan Mantri Awas Yojana Gramin online. There aren’t many complications involved in applying for this scheme. The application process for PMAY is very easy, and the interface for the online portal is also very user-friendly. You only require a few documents to apply for this scheme, such as your Aadhar card number, PAN card, etc. As soon as you open the portal, all you need to do is open the screen and follow the directions. Fill out the application per the instructions, and you will be eligible for the PMAY scheme. [B-02] Conclusion Everybody deserves to live under a good, safe roof they can call home. The government has been trying to help people buy their dream homes. This is why they started the credit-linked scheme for people who couldn’t afford to buy homes alone. This scheme has been really helpful in eliminating poverty and homelessness in India. The government’s efforts should always be complemented by those of private companies.

08-11-2023

GST

Things You Should Know About Mahagst in India

If you are an entrepreneur, you know the importance of GST. The GST has streamlined the whole tax filing procedure for businesses. Since its inception in 2017, the GST portal has made revolutionary changes in the taxation domain. Now, companies can register for GST, file taxes and refunds, and cancel GST registration online. Following the Union government’s GST portal, Maharashtra has also created a similar portal called MAHA GST. As Mumbai is the country’s financial capital, having a separate website for filing taxes in this region makes sense. So, let’s see everything you should know about Maha GST in India. What is Maha GST? As already mentioned, the Maha GST is the GST portal launched by the government of Maharastra. While the Indian government already has another portal, www.gst.gov.in, the Maha GST portal is specifically for businesses registered in Maharashtra. After the launch of this portal, the ease of doing business has significantly improved in Maharashtra. Furthermore, the Maha GST portal has increased the number of GST taxpayers in Maharashtra. Who should use the MahaGST portal? Businesses operating in Maharashtra need to register on the Maha GST portal. There are also specific registration criteria on the MahaGST website. If the business: It has an aggregate turnover of more than Rs 20 lakh yearly. Supplies goods and products worth Rs 40 lakh in a year. It is available on an e-commerce website and does transactions of goods countrywide. Besides businesses, individuals may also get registered on the MahaGST portal if they are: A casual taxable person who takes a temporary supply of goods through another business or shop. Registered under another taxation system such as VAT, Excuse duty, etc. Validity of Maha GST registration Usually, the Maha GST registration is valid in the state until it isn’t cancelled. However, you may apply for cancellation if you want to withdraw your Maha GST. For non-resident Indians or casual tax-paying individuals, the GST registration is temporary. In this case, the GST registration expires after a certain period. To register on the Maha GST portal, you will need a permanent account number (PAN). This PAN is mandatory for every taxpayer in India, whether they are foreigners, proprietors, partners, or LLPs. How to register on the Maha GST portal? As said earlier, every business registered in Maharashtra must have a GST registration. The complete process is online, from registration to getting a GST number. You don’t need to visit any office during the entire process. Here are the steps you need to follow to register on the mahaGST portal. Go to the official website of mahaGST (www.mahagst.gov.in). The homepage of the Maharashtra GST portal will be opened on your screen. Click on the other acts’ registration. Choose the new dealer registration option. Now click on the new dealer registration under various acts. Read the process and documents required for registration. Now click the “Next” button on the screen’s bottom right. Then, click on New Dealer and select “Next” from the screen again. A dialogue box will appear; fill in the PAN details and follow the instructions. Documents required for registering on the MahaGST portal To register on the MahaGST portal, you will need the following documents: Keep these documents ready before applying for registration. If you are the sole proprietor of your company or registering as an Individual, you will require the following: PAN card Aadhar card Address proof Bank account detail Passport-size photo in JPEG format under 100kb. If you are registering your business in a partnership, including LLP, you will require these documents: PAN card of all partners Aadhar card of all partners. Passport-size photographs, JPEG under 100kb Bank account details of the firm Address proof of primary business location. Address proofs of all partners. If the GST registration is for a Hindu Undivided Family (HUF), you will require the following: PAN and Aadhar cards of HUF and Karta. Photograph of Karta, JPEG under 100kb. Bank account details of the firm Address proof of primary business location. If you are registering as a company, the required documents are: PAN card of the company Memorandum of Association and Articles of Association Account details of the company The company's authorised signatory uses PAN and Aadhar cards. Benefits of registering at Maharastra GST portal There are various benefits to registering at the mahaGST portal. The Maharashtra GST portal lets taxpayers register for GST, file GST returns, and inquire about GSTIN. Moreover, taxpayers can get the latest GST rules and notifications. Once you get a GST registration number from the MahaGST portal, you can create a challan, initiate Mahagst payments, and pay your taxes in a single place. The benefits of the Maha GST portal: Uniform rate of taxes on goods and services throughout the nation. No overlapping or cascading effect of taxes. Composition scheme for small companies and businesses. Easy to comply High exemption limit for small businesses and goods. Transparency in tax filing and returns. The whole process is streamlined and online. MahaGST e payment facility. The composition scheme for small businesses: The government has launched a GST composition scheme for small businesses to simplify the GST filing process and reduce compliance costs. Businesses with an annual turnover of fewer than Rs 75 lakhs are eligible for this scheme. Under this scheme, Maharastra businesses must fill out the CMP-08 form quarterly and GSTR 4 form annually. The composition scheme is annual, and businesses must pay quarterly tax at a certain percentage of their turnover. [B-02] Conclusion: The MahaGST portal is one of the Maharashtra government's most innovative ideas for streamlining the GST process. For businesses, the portal has made it easy to comply with the government's directions and is updated with new notifications. On the other hand, for the government, the portal has reduced tax evasion. The portal has created a win-win situation for businesses and the government.

08-11-2023

Know More

Which Trading Account Is Best for Beginners?

Trading accounts hold investments and securities. A trading account is a good place to keep your stocks and shares safe. It makes it possible to trade and do business online in a way that is quick, easy, and safe. You’ll need a trading account to do this. You’ll need one that is strong, safe, and can meet all your customers’ needs. There are many different ways to open a trading account in India. So, it’s hard to choose the right one. We’ve made a list of the best accounts for trading in India. So, without further ado, let’s get right into it! Top 5 Best Trading Account Options in India for Beginners Zerodha Pros Zero-brokerage No annual maintenance fees Easy money deposits Very easy-to-use Cons The account opening process takes a lot of time. Zerodha’s main goal has always been to give its customers the best service. They do this by using cutting-edge technology solutions. Their Demat service works with three different mobile phone apps. This is the best trading account you can get in India. They pay close attention to every detail. Zerodha has made a great user interface by making it easy to use and useful (UI). The user interface has a lot of features and is easy to use. They have become one of India’s most important trading accounts. In 2010, Zerodha was India's first company to offer discount brokerage services. You can trade stocks, bonds, government securities, currency F&O, commodity F&O, and equity F&O. All can be traded with the Zerodha trading account. Upstox Pros Zero commission Invest with as low as ₹1 Simple interface Quick application processing Cons No recommendations or tips for users Clients can use Upstox to access tools that help them manage their trading accounts. Its brokerage fees are some of the lowest of any trading account. India has several trading accounts from which to choose. However, some of the fastest response times and friendliest staff are at Upstox. As a customer, you can be sure that your problems will be solved quickly and well. All this is because their support team is knowledgeable, helpful, and good at what they do. Because it has so many tips and insights, Upstox is the best trading account in India. These insights keep you updated on your trading account’s business, market, and portfolio. They used to be called RKSV Securities, and now only Zerodha is ahead of them. Almost everything about their brokerage model is the same as Zerodha’s. They used to have unlimited monthly options, but they stopped doing that. They do not charge brokerage fees for trades with delivery. They charge Rs 20 per completed order. Opening an account with them is also free. They have support from well-known people, such as Mr Ratan Tata. Groww Pros Paperless account opening Advanced trading platform Simple UI Can also invest in US markets Cons No support for IPO investments You won’t have to pay anything when you open a trading account with Groww. Also, there are no fees to keep the account open. You can sign up for an online account from the comfort of your home. No brokerage fees are charged. So, their trading account is the best in India. Systematic investment plans, direct mutual funds, and reliable intraday trading are all supported. It’s easy to integrate with other apps and services to improve your workflow. Groww was started in 2016 to help millions of Indians who needed financial help. A Groww trading account is a great way to keep track of your investments. And get news and information about the market and your portfolio. Such information can help you make smart choices about your money. With a Groww trading account, you can trade stocks, index funds, commodities, and other assets. The platform also has charts with market information, which can help you make better decisions. Groww is one of the safest trading programs you can use. As a bonus, there are no fees to trade on Groww. ICICI Direct Demat Account Pros Supports paperless account opening. Detailed watchlist Reliable broker Cons Has annual maintenance charges Investing in equity markets is very easy with an ICICI Direct Demat Account. Equity funds, partial shares, and individual stocks are only some assets you can trade. You can trade the shares of companies worldwide. Also, you can gain market insight with an ICICI Direct Demat Account. The ICICI Direct Demat Account is one of India’s most user-friendly trading accounts. That’s because of the flexibility of its interface. The ICICI Direct trading account can be linked to your ICICI Bank account. It will also give you the convenience of a “3-in-1” trading account. Customers can select from several packages to meet their requirements. This is a great option for current ICICI Bank account holders. Customers with an ICICI Direct Demat Account can access other ICICI services, such as loans, fixed deposits, and more. Angel Broking Pros Can invest in multiple markets Large network of brokers Zero Brokerage Cons Poor customer service Investors can rely on Angel Broking for sound tips based on solid data analytics and expert guidance on allocating their capital. All investors get free access to their investment advice and mobile apps. If you’re looking for a trading account in India, go no further than Angel Broking. Their excellent services, user interface, and Angel One app make them a top choice. More than thirty years ago, it began operating as a discount broker. Customers can select their preferred package among the available options. Their asset management solutions and brokerage services are top-notch. That’s before we even mention how great they are at providing trading accounts. When you open a trading account with Angel Broking, you can do so quickly, easily, and at no cost. Paytm Money Trading Account Pros Great investing insights Easy fund transfers Can invest with as little as Rs. 100 Cons Doesn’t support commodities Regarding low-cost investment options, Paytm Money is the most well-known in India. The services provided by Paytm Money’s trading account are sturdy and trustworthy. Apps are available for Android and iOS, designed to make even the most unskilled trader feel comfortable. The Paytm trading account updates its users on the latest news in certain areas, such as personal finance, the stock market, and more. Getting started in trading requires only Rs. 100, which can be readily deposited into a trading account. You can use your Paytm trading account to invest in multiple products. For example, the stock market, mutual funds, ETFs, IPOs, futures, and options. You can even invest in the National Pension System (NPS). [B-02] Conclusion Time is money, and trading accounts have allowed people to save both. Trading accounts have enabled this by facilitating paperless trading. And remove the need for associated administrative processes. Upstox and Zerodha are two of India's greatest trading accounts. Having the option to buy and sell at any time is crucial during volatile market conditions. A trading account serves this purpose. But, before a beginner can select a trading account, there’s something they should do. They must look for certain helpful features when picking a trading account. For example, educational resources and personalized guidance. Finally, they must ensure that the brokerage fee is minimal.

08-11-2023

Personal Loan

Key Perks of a Used Car Loan

A used car loan helps you drive home your dream vehicle without draining your savings, offering flexible repayment options, lower interest rates compared to unsecured loans, and the chance to build or strengthen your credit. Whether you’re a first-time buyer or looking to upgrade smartly, understanding the benefits of a used car loan can make your purchase both convenient and financially savvy. Benefits of a Used Car Loan from Piramal Finance Getting a used car loan to pay for your dream car is now quite simple. With Piramal Finance’s used car loan, you can benefit from a simple process, faster loan approval, and total freedom. The top five perks of a used car loan are as follows: Flexible Repayment Choices Piramal Finance allows you to determine your loan sum, payback term, and EMI period. In this manner, you can manage your budget and buy a used car when it is most suitable for you. Attractive Interest Rates Because the cost of a used car is less than that of a new one, Piramal Finance offers low-interest car loans for buying a car. The used car interest rate charged by Piramal Finance is highly tempting, which allows you to prepare your budget before finalising the purchase of a used car. Fast Approvals Buying a used car is now quite simple since you can complete the loan process online. The loan approval and payment processes are quite rapid and easy, making the whole loan procedure very simple. Simple Paperwork The paperwork needed is quite basic and modest, making the paperwork process simple. The paperwork needed for loan requests differs depending on the funder. Valid identity verification, salary proof, property proof, valid address proof, and picture proof are usually required when asking for a used car loan from Piramal Finance. Small Down Payment Some banking firms give 100% funding on used cars, generally known as a loan on used cars with no down payment. You are likely to get the whole loan amount if the value of the used car is less than the loan sum. How to Pick a Used Car Loan? Here are a few elements to check while looking for a used car loan: Interest Rates Like any other loan, one of the most vital aspects of a used car loan is the interest rate. Interest rates on used car loans are higher than those on new cars and may vary from 10 to 17 percent depending of various factors like credit history, nature of employment etc.. Picking the Loan Sum When looking for a car, consider how much you would have spent on a new vehicle and then seek similar types of used cars. Keep your loan sum modest and refrain from extending your budget to get a high-end car whose used price is fair. Note that high-end cars need more upkeep. As a result, it is vital to avoid taking out a large used car loan. Make a Greater Down Payment After deciding on the loan sum, it is vital to make a sizable down payment. Used car loans can offer you credit for up to 85% of the automobile’s purchase price. However, keep in mind that used car loan rates of interest are on the high end. As a result, you will wind up paying more interest. In addition, a used car will be less costly than a new car. Make as large a down payment as possible when applying for a used car loan. This will keep your EMIs modest. Picking a Tenure Most used car loans have a maximum duration of 5 years, while certain lenders may offer up to 7 years. Yet, make it a goal not to extend your term too much. Because the interest rate is higher, you will end up paying more in interest on a loan with a longer term. Try to limit your loan term to under 3 years. Calculate Your EMI with a Loan Calculator When getting a Piramal Finance loan, it is vital to figure out the monthly EMI. The EMI outgo must be such that you can pay those payments each month without affecting your budget. You may use a debt calculator for this. Enter your loan sum, duration, and interest rate, as well as the calculator, which will calculate your EMI. [B-02] Conclusion Using a Piramal Finance loan to pay for a used car might present you with a plethora of perks. One of the main perks you will enjoy is a lower car price. A used car will always be less costly than a new one. As a result, your loan’s principal will be reduced. As a consequence, your auto loan interest rate will be lower. Another key advantage of buying a used car with a loan is that you may still benefit from a car loan tax deduction. However, keep in mind that the auto loan tax deduction is only applicable for cars used for business purposes under Section 80E of the Income Tax Act of India.

08-11-2023